Car loans at 10%

India’s largest bank, State Bank of India (SBI), is offering car loans at 10 per cent for the first year of the repayment period. This scheme is open from February 23 to May 1, 2009. The interest rate after the first year would be at the bank’s benchmark prime lending rate (PLR) minus 0.25 per cent, the rate now charged by SBI for a loan of 84 months. SBI’s PLR now is 12.25 per cent, which is likely to be revised downwards by 0.50 to 1 per cent over the next one year.